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>From AP:
LTCM had about $2.2 billion in capital from its investors, but it borrowed
money from financial institutions to buy securities worth more than $90
billion. Fund managers then used those securities as collateral to make
speculative bets representing $1.25 trillion.
That is using notional funds.
Regards,
John J. Lothian
In a message dated 10/1/98 2:44:07 PM Central Daylight Time, ariel@xxxxxxxx
writes:
<< R/T's
I have been following the posts about LTCM with eager interest. I must
say there have been some wonderful posts that have helped explain what
went on with them.I have heard the term "notionally
funded" in regards to LTCM. Would someone please explain this term.
thanxs Harry >>
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